Doug LaMalfa Federal Disaster Tax Relief Certainty Act

Progress

Timeline

• Apr 28Received in the Senate and Read twice and referred to the Committee on Finance.
• Apr 27Motion to reconsider laid on the table Agreed to without objection.
• Apr 9Placed on the Union Calendar, Calendar No. 525.
• Mar 25Ordered to be Reported by the Yeas and Nays: 43 - 0.
• Sep 15Referred to the House Committee on Ways and Means.

Summary

**Federal Disaster Tax Relief Act of 2025 (HR 5366)** This bill would provide tax relief to individuals and businesses affected by federally declared disasters. **What it does:** - Allows disaster victims to deduct casualty losses on their tax returns more easily - Permits early withdrawal from retirement accounts without penalties for disaster-related expenses - Extends tax filing deadlines for affected taxpayers - Provides additional tax credits for disaster recovery costs **Who it affects:** - Individuals and families who suffered property damage or financial losses from federally declared disasters - Businesses operating in disaster-affected areas - Anyone needing to access retirement funds for disaster recovery **What would change:** - Disaster victims could keep more money by paying less in taxes - People could access their retirement savings sooner without penalty to pay for repairs and recovery - Tax filing would be more flexible during recovery periods - Overall financial burden of disaster recovery would be reduced through various tax benefits The bill is currently introduced and needs congressional approval to become law.

How This Affects You